We ALL are in transition!
Something is bugging me. There is so much geo-political/economic noise out there we can’t hear ourselves think! Lets collectively put on our noise cancelling headphones and………think big picture. I was a part of the economic redevelopment efforts in Former Soviet Union immediately after the fall of the Wall as well as the Asian Financial Crisis, the war in the Former Yugoslavia and points in between. It is through this lens I’ve noted that we have reached the end of the useful lifespan of our current financial and monetary systems nationally and globally. It is easy enough to find, if we don’t know already, the details behind all the recent and major financial and monetary crises. These details reveal the steady decline in the level of consumer trust in financial institutions, central banking and the “full faith and credit of the US Government”. Simply put, the US is beginning to lose its status as the world’s reserve currency given numerous — non-USD denominated- sovereign trade agreements such as between China and Russia (in petroyuan) and other trading pairs. We need not concern ourselves with the painful details of past crises and their impact on shifting geo-political and economic realities. We need only to recognize that as our levels of trust continue to decline so will the stability of our centralized financial and monetary systems.
Whether these legacy systems explode all at once or simply die a painful death over time, we are currently and we hope carefully — at a global level — transitioning to new socio, political and economic constructs that will drive society in the future. These constructs will be decentralized in nature without need for financial and other fiduciary intermediaries that have violated our trust over and over again (i.e. Experian cyberhack, Wells Fargo false accounts, HSBC drug money laundering, mortgage-based credit default swaps, market trading by banks that bet against client market positions, Madoff ponzi, etc.). These entities — as currently configured- will be replaced by decentralized ledger technology (blockchain) service providers that will write the code and establish the models and partnerships that will provide the foundation for our societal behavior in the future.
One of my main takeaways from the US State Department’s blockchain in diplomacy and development event last October 11 was that blockchain today is where the internet was before we had Facebook, Amazon, Paypal and Netflix. Whatever we might think we understand about blockchain today will, without a doubt, look totally different in five years! I am not a technical, blockchain code writing type of guy, but I have been studying, working and investing in this digital, blockchain and cryptocurrency space almost from the beginning. There is an incredible amount of brainpower that has lined up behind creating this new industry of blockchain service providers.
We hear about ‘out with the old’ and in with the ‘new softer, kinder capitalist system’. That new capitalist system will be built on blockchain technology. If you want to see the future……..think about that!